UPL sells entire stake in Brazilian firm for $58.50 million1 min read . Updated: 01 Apr 2014, 11:33 PM IST
Italian firm Sipcam buys stake
New Delhi: Agrochemicals firm UPL Ltd, earlier known as United Phosphorus Ltd, has sold its entire 50% stake in its Brazilian subsidiary Sipcam UPL Brasil SA for $58.50 million to an Italian firm. Sipcam UPL Brasil SA, a joint venture between UPL and Italian company Sipcam with both companies have equal stake of 50 per cent each. “UPL has entered into an agreement with an Italian company Sipcam to sell its entire stake of 50% in Brazilian agrochemicals company Sipcam UPL Brasil SA subject to fulfilment of certain conditions and approvals," the UPL said in a statement.
The gross consideration amount of the transaction is $58.50 million. This will be the first major divestment by UPL and the entire process is expected to be completed by June this year, the statement added. The company is planing to use the cash released from the sale of stake for its business requirements. “The divestment will release the funds to the company which will be available for new opportunities and meet growing business requirements. It will also help UPL to have a more focused approach for the Brazilian agrochemicals market," it added.
UPL also has a stake in another Brazilian firm, UPL do Brasil Industria e Comerciode Insumos Agropecuarios SA, In which it recently raised its stake to 73%. The company’s revenue for the year ended on 31 March 2013 was about 91.8 billion.